EPA Unleashes 4-Pronged Assault on Fossil Gasoline Energy Air pollution

In an unprecedented transfer, the U.S. Environmental Safety Company (EPA) on April 25 concurrently finalized 4 main environmental guidelines overlaying greenhouse gases (GHG), air toxics, wastewater discharges, and coal combustion residuals from fossil fuel-fired energy vegetation.

Among the many guidelines is the EPA’s last Carbon Air pollution Requirements, which marks the company’s third try and broadly curb GHG emissions from the nation’s fleet of coal vegetation and its first to control GHG emissions from new pure gas-fired energy vegetation. The company additionally issued an up to date and strengthened Mercury and Air Toxics Requirements (MATS), which targets coal energy emissions. Individually, the EPA finalized the Effluent Limitations Pointers and Requirements (ELGs), which goal to drastically cut back pollution discharged by steam energy vegetation by wastewater. Lastly, the suite of rules features a last rule governing legacy coal combustion residuals, addressing the long-delayed mandate from the DC Circuit to implement oversight on coal ash regulation.

EPA Administrator Michael Regan on Wednesday informed reporters the company’s regulatory sweep is a part of an built-in, coordinated and economically environment friendly strategy geared toward streamlining regulatory processes and delivering predictability. The strategy, he defined, stems from a pledge made throughout CERAweek 2022.

“I stood earlier than business stakeholders and outlined a transparent plan for EPA as an strategy to addressing dangerous air pollution from the ability sector. On that day, I dedicated to sustaining transparency and open dialogue in order that state and federal power regulators, energy corporations, and grid operators would have the knowledge they wanted to make long-term investments within the transition to a cleaner power economic system,” he stated. “And in the present day, I’m proud to announce that we’re following by on that dedication.”

Nevertheless, the EPA’s suite of ultimate rules instantly elicited sturdy criticism from components of the U.S. energy business, which had urged the company to heed their issues about expertise feasibility, stringent compliance timelines, and reliability impacts.

Authorized specialists have cautioned the GHG rule, prominently, will probably encounter authorized challenges. “We are able to additionally anticipate a fierce political and authorized struggle forward,”  Mona Dajani, international co-chair of Vitality Infrastructure & Hydrogen at legislation agency Baker Botts, informed POWER. “Particularly on the authorized entrance, business opponents will problem the new rule as a violation of the key questions doctrine, as outlined within the U.S. Supreme Courtroom’s choice in West Virginia v. EPA. That call successfully restricted EPA’s attain,” she famous.

The next is an in depth overview of the ultimate guidelines launched in the present day. (See POWER’s protection of business evaluation and reactions to the regulatory sweep right here).

Last Carbon Air pollution Requirements for Current Coal-fired and New Fuel-fired Energy Vegetation

The EPA finalized a number of actions below Part 111 of the Clear Air Act (CAA) overlaying present coal-, oil-, and gas-fired steam producing items (below Part 111[d]) and new and reconstructed gas-fired combustion generators and modified coal-fired steam producing items (below Part 111[b)]):

• Last emission pointers for GHG emissions from present coal-fired and oil/gas-fired steam-generating electrical producing items (EGU),
• Finalized revisions to the brand new supply efficiency requirements (NSPS) for GHG emissions from new and reconstructed fossil fuel-fired stationary combustion turbine EGUs,
• Finalized revisions to the NSPS for GHG emissions from fossil fuel-fired steam producing items that undertake a big modification based mostly upon the 8-year assessment required by the CAA.

The EPA, as well as, finalized its repeal of the  Trump-era Inexpensive Clear Vitality (ACE) rule, however it refrained, because it had indicated in February, from finalizing emissions pointers for GHG emissions from present gas-fired energy vegetation. The company has stated it is going to deal with emissions from the “whole fleet of pure gas-fired generators” as a part of a extra “complete strategy” to control “local weather, poisonous, and standards air air pollution.”

In step with the statutory command of CAA Part 111, the ultimate NSPS and emission pointers of the EPA’s actions “replicate the appliance of the perfect system of emission discount (BSER) that, considering prices, power necessities, and different statutory elements, is satisfactorily demonstrated,” the EPA stated on Thursday.

However, holding with the EPA’s contentious  Might 2023 proposal, the EPA decided that the BSER for the longest-running present coal items (items that plan to function after January 2039) and for brand spanking new baseload combustion generators is carbon seize and sequestration (CCS). The requirements require present coal items to fulfill a typical of efficiency based mostly on the implementation of 90% CCS.

Nevertheless, the foundations notably lengthen compliance dates for coal items from January 2030 (as required within the proposal) to January 2032. In addition they present an applicability exemption for coal items that plan to stop operation by January 2032.

However for brand spanking new combustion generators, the ultimate guidelines seem to use extra stringently in comparison with the proposal. The EPA expanded the applicability of probably the most stringent baseload normal to items working above a 40% capability issue (in comparison with 50% within the proposal). It additionally moved again compliance deadlines for the 90% CCS-based normal for baseload items from 2035 (within the proposal) to 2032.

New baseload items will likely be topic to an preliminary “section one” normal based mostly on environment friendly design and operation of mixed cycle generators and a “section two” normal based mostly on 90% seize of CO2. New intermediate load generators (with a 20-40% capability issue) are topic to a typical based mostly on the environment friendly design and operation of straightforward cycle generators. New low-load generators (with a capability issue of lower than 20%) are topic to a typical based mostly on low-emitting gas. 

Notably, in its last Carbon Air pollution Requirements, the EPA scuttled its extremely contested proposed effort to incorporate hydrogen co-firing as a BSER pathway for baseload and intermediate items. Nevertheless, a senior administration official informed reporters that energy mills might nonetheless think about hydrogen co-firing as a compliance choice for brand spanking new pure gasoline and even coal vegetation.

Lastly, in comparison with the proposed rule, the ultimate guidelines pay particular consideration to reliability impacts. The EPA notably adopted two non-compulsory reliability-related mechanisms that states could select to include into their plans: A brief-term reliability mechanism for brand spanking new items or items responding to declared grid emergencies and a “reliability assurance mechanism” for items with “stop operations” dates which may be wanted to remain on-line longer than anticipated because of documented reliability wants.

Nonetheless, as a result of “states are afforded the pliability to implement the ultimate carbon air pollution rule in state plans,” the rule’s influence on energy plant retirements “might be totally different to the extent states and energy corporations make totally different selections than these assumed within the illustrative evaluation [laid out in the rules’ Regulatory Impact Analysis (RIA),” the EPA told POWER on Wednesday.

The agency’s illustrative analysis takes into account that the power sector is already in the midst of change, it noted. “In 2023, the power sector included ~181 GW of operational coal-fired EGUs,” it said. So far, an estimated 56% of this fleet (101 GW) has publicly announced plans to retire or convert to gas prior to 2039 and another 8 GW by 2040, leaving approximately 73 GW of operational coal-fired EGUs in 2040, it noted.

The illustrative analysis suggests the final rule could result in another 14 GW of coal retirements in 2040, along with 6 GW of coal-to-gas conversion and 3 GW of derated capacity. “This results in 19 GW of coal-fired capacity remaining in place.” By comparison, without the rule, the EPA’s baseline economic projections suggest that only 42 GW of operating coal capacity could be operational by 2040, a figure that also factors in additional projected retirements, capacity derates, and conversions to gas.

Final Rule to Strengthen and Update the Mercury and Air Toxics Standards (MATS) for Power Plants

The EPA on Thursday announced a significant update to the  2012–finalized National Emission Standards for Hazardous Air Pollutants (NESHAP) for Coal- and Oil-Fired Electric Utility Steam Generating Units—a rule more commonly known as the Mercury ad Air Toxics Standards (MATS). The final rule substantially reflects the EPA’s April 2023 proposed rule.   

MATS limits coal- and oil-fired power plant emissions of mercury and acid gas hazardous air pollutants (HAPs)—such as hydrogen chloride (HCl) and hydrogen fluoride. The standards also cover non-mercury HAP metals such as nickel, lead, and chromium, and organic HAPs such as formaldehyde and dioxin/furan.

The new final rule tightens numeric emission limits for filterable particulate matter (fPM)—a surrogate for total non-mercury HAP metals. Under the previous standard, existing coal plants met a fPM standards of 0.030 pounds per million British thermal units (lb/MMBtu) of heat input. The final MATS revises that standard to 0.010 lb/MMBtu (as proposed). “Currently, 93% of coal-fired capacity without known retirement plans before the compliance period has already demonstrated an fPM emissions rate at or below 0.010 lb/MMBtu,” the EPA noted on Thursday.

The EPA also tightened mercury emission standards for lignite-fired power plants, requiring they meet the same standard as existing bituminous and subbituminous plants: 1.2 pounds per trillion British thermal units (lb/TBtu) or 1.3E-2 lb/GWh (the previous standard was 4 lb/TBtu). “EPA’s review of information on current mercury emission levels and controls for lignite-fired EGUs shows that lignite-fired EGUs can achieve the more stringent mercury emission rate using available control technologies and/or improved methods of operation at reasonable costs,” the agency noted.

While coal and oil plants previously had the choice of demonstrating compliance for non-mercury HAP metal emissions limits by monitoring fPM via quarterly sampling or particulate matter (PM) monitoring continuous emissions monitoring systems (CEMS), the final rule will make it mandatory to require demonstrating compliance using PM CEMS. The final rule also sets down a firm definition of startup  as either “the first-ever firing of fuel in a boiler for the purpose of producing electricity, or the firing of fuel in a boiler after a shutdown event for any purpose.” 

The EPA’s RIA for the MATS rule suggests about 5 GW of operational EGU capacity will need to comply with the rule in 2028. Another 11.6 GW would either need to improve existing PM controls or install new PM controls to comply with the rule. “EPA projects that no coal-fired capacity would retire under the final rule,” it said.

Final Supplemental Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category

On Thursday, the EPA also finalized revisions to its technology-based effluent limitations guidelines and standards (ELGs) for the steam electric power generating point source category, which the EPA proposed in March 2023. The final rule finalizes zero-discharge effluent limitations for all pollutants in flue gas desulfurization (FGD) wastewater and bottom ash transport water (BATW) starting in 2025.

It also proposes numeric discharge limitations for mercury and arsenic in combustion residual leachate (CRL) and legacy wastewater, which is discharged from certain surface impoundments. Finally, the rule eliminates less stringent requirements for two subcategories of facilities (high flow facilities and low utilization energy generating units) that were contained in the 2020 regulation.

According to the EPA, the final ELG rule considers flexibilities where appropriate. “For example, recognizing that some coal-fired power plants are in the process of closing or switching to less polluting fuels such as natural gas, the regulation includes flexibilities to allow these plants to continue to meet the 2015 and 2020 regulation requirements instead of the requirements contained in this final regulation,” it notes. “This is done by creating a new subcategory for [EGUs] that completely stop coal combustion by 2034.”

EGUs within the new subcategory at the moment are required to fulfill the 2020 rule necessities for FGD wastewater and BATW moderately than the brand new, extra stringent zero-discharge necessities that apply to different amenities, the EPA stated. “The subcategory additionally incorporates necessities for CRL discharges that fluctuate based mostly on whether or not the EGU continues to be combusting coal or not.”

EPA estimated about 232 vegetation of the nation’s 858 steam energy vegetation generate the wastestreams coated by the regulatory choices. It additionally acknowledges the rule will likely be pricey in the course of the compliance years (2025-2029), although it suggests. “On an after-tax foundation, the ultimate rule has estimated incremental annualized compliance prices starting from $479 million to $956 million,” it notes.

That features capital prices of as much as $415 million and operations and upkeep prices of as much as $541 million. Nevertheless, these prices characterize small projected will increase in whole electrical energy market prices, the online impact of decreases in gas prices, variable O&M, and glued O&M, and will increase in capital and CCS prices.

Legacy Coal Combustion Residuals Floor Impoundments and CCR Administration Models Last Rule

On Thursday, the EPA introduced last adjustments to the CCR rules for inactive floor impoundments at inactive electrical utilities below the Useful resource Conservation and Restoration Act (RCRA).

These so-called “legacy CCR floor impoundments” discuss with areas at energy vegetation the place coal ash has been saved in floor impoundments that have been operational however are not in use and haven’t been regulated below federal legal guidelines up up to now.

The rule responds to an August 2018 opinion by the U.S. Courtroom of Appeals for the District of Columbia Circuit (Utility Stable Waste Actions Group et al. v. EPA) that vacated and remanded the availability that exempted inactive impoundments at inactive amenities from EPA’s April 2015 CCR rule.

“These new rules are additionally pushed by the report, which clearly demonstrates that regulating legacy CCR floor impoundments can have vital public well being and environmental advantages. It’s because legacy CCR floor impoundments usually tend to be unlined and unmonitored, making them extra liable to leaks and structural issues than items at utilities which can be at present in service,” the EPA stated.

Within the last rule, EPA establishes obligatory groundwater monitoring, corrective motion, closure, the requirement for corrective actions if contamination is detected, and the right closure and post-closure care of those impoundments to mitigate ongoing environmental influence.

The EPA estimated annualized monetized prices of the motion will likely be about $214 million to $240 million per 12 months, principally for legacy CCR impoundments. Nevertheless, the company additionally famous that it doesn’t anticipate the rule to have an effect on present operations at energy vegetation and, subsequently, anticipates no impacts to electrical energy or grid reliability. “This rule displays the Administration’s dedication to cut back air pollution from the ability sector whereas offering long-term regulatory certainty and operational flexibility,” it stated.

—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).